Retirement requires a lot of thought

To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.

Published: June 7, 2014;Last modified: June 7, 2014 09:54PM

Steven Sass is an economist and an expert on retirement planning. Yet he acknowledges that he and his wife, a fiction writer, are uncertain about their retirement housing plans.

Both agree they’d like to downsize from their sprawling two-level contemporary to a smaller, single-story space. Both also wish to stay in the Boston area, where their four grown children and three grandchildren reside. But beyond that, they’re conflicted.

“I’d like an urban setting, but my wife wants something more bucolic,” says Sass, a program director at Boston College’s Center for Retirement Research.

Though the couple is still at least four years away from retirement, Sass says they’re already “sniffing around” in search of the ideal retirement setting for their wants and needs. They’re also reviewing their financial plan to ensure that the next home they buy will be affordable. And he advises other retirement-age downsizers to do the same.

“Downsizing — which means moving to a less expensive home not just a smaller one — usually increases your income by reducing your housing costs. But remember that the cost of downsizing usually runs about 10 percent of the value of your house,” Sass says.

He says retirees are often happier living in a modest home while pursuing their post-work dreams than in a ritzier place elsewhere. The good news is that those with such common interests as tennis and golf can find these activities in many locations. But others, such as opera aficionados, have a narrower range of choices.

Leo Berard, charter president of the National Association of Exclusive Buyer Agents naeba.org), says it’s crucial to plan ahead for a move in retirement.

Here are a few pointers:

Think through the implications of moving near your grown children.

“The kids are a powerful draw for lots of folks. But you need to think through the implications of living very close to them,” Berard says.

Perhaps you relish time with your offspring. But how would you feel if asked to take on the role of regular baby sitter for young children?

“Even if the kids’ mom and dad don’t intend to make you their primary caregiver, they could start to rely on you if good child care is expensive in their area,” Berard says.

It’s also possible that your adult children will be less than thrilled having you live in the same neighborhood. To be sure they’re OK with the idea, Berard recommends you have a candid conversation before committing to the move.

Explore a retirement “paradise” to see if you’d truly like it.

Fancy websites and glossy ads tout the idea of moving to faraway countries for retirement, where it’s said the scenery is beautiful and the cost of living low.

But in spite of all the hype surrounding such Utopian retirement settings, many who choose them find them less than satisfactory, says Eric Tyson, co-author of “Home Buying for Dummies.”

“The novelty of unlimited recreational activities ... can wear off fast,” he says.

As Tyson notes, retirees living in an isolated resort area often feel disconnected from the everyday lives of friends and family members — even if they come by on vacation from time to time.

Examine your financial situation.

Do you lack substantial retirement savings and expect to rely on proceeds from the sale of a large family home in your future years? In that case, Berard recommends you plot a strategy with a trusted financial adviser or accountant before making any sudden move.

“Getting professional advice is particularly relevant in this era of rapidly changing home values. You want to carefully time the sale of your present property before you buy another one,” he says.